Berlin approves 11.6 billion euros in Ukraine aid for 2027

Germany has approved a new medium-term budget framework that continues significant financial support for Ukraine while signalling tighter allocations in later years, as part of a broader increase in defence and infrastructure spending.

The government on April 29 approved key targets for its 2027 budget, including total borrowing of 196.5 billion euros ($229 billion). Defence spending and support for Ukraine remain central pillars of the plan, although Ukrainian aid is set to decline in the latter part of the framework period extending to 2029, Reuters reports. 

Germany will continue supporting Ukraine with 11.6 billion euros in 2027 and 8.5 billion euros per year between 2028 and 2030, according to the key points approved on April 29. Asked about the cut in support ‌for ⁠Ukraine from 2028, Finance Minister Lars Klingbeil pointed to broader EU financing mechanisms, saying that “the numbers included in the financial framework could change in future depending on Ukraine's needs.”

He added: “Speaking at a news conference, Klingbeil added that the numbers included in the financial framework could change in future depending on Ukraine's needs.”

Chancellor Friedrich Merz linked the increase in defence spending to evolving global security risks.

"Developments over the past year, including in Iran in recent months, show how important investments in our defence capability are," Chancellor Friedrich Merz told reporters.

Total defence spending, including a special fund and Ukraine-related allocations, is projected to reach 144.9 billion euros in 2027, equivalent to 3.1% of GDP—meeting NATO commitments. Germany plans to raise this further to 3.7% of GDP by 2030, amid broader alliance targets of 5% by 2035.

The 2027 draft budget, part of a financial framework through 2029, foresees total spending of 543.3 billion euros, up 3.6% from the previous year, with 180 billion euros in new debt in 2027 alone.

By Sabina Mammadli